After enjoying a notable boost above $20,000, Bitcoin (BTC) fell below this psychological price amid weak appetite from institutional investors.

CryptoQuant Market Knowledge Provider he pointed:

“Institutional investors who are not buying BTC yet. If prices rose without institutional investors buying ahead of the FOMC rate announcement in November, it is likely to lose its bullish momentum and write it off.”

Bitcoin hovered around $19,494 during intraday trading, according to CoinMarketCap.

This price drop emerged as the United States Recorded the slowest month of hiring in 18 months, indicating that the hot labor market was cooling slightly as the Federal Reserve tried to fight runaway inflation with inflation hikes.

Marcus Sotiriou, an analyst at GlobalBlock, stated:

“The jobs report was bearish for cryptocurrencies and stocks as the data came in hotter than expected.”

Sotiriou added that the consumer price index (CPI) data expected for next week will shed light on the move that the Federal Reserve (Fed) would take regarding the interest rate.

The Federal Reserve has been at the forefront of interest rate hikes, which have been detrimental to the crypto market as bears continue to bite.

Since June of this year, the Fed has adopted the strategy of raising interest rates by 75 basis points (bp), a scenario last seen in 1994.

However, the United Nations Conference on Trade and Development (UNCTAD) recently warned the Federal Reserve against wasting caution based on its continued tightening of monetary policy because this could trigger a global recession. . Blockchain.News informed.

Bitcoin has lacked the significant upside momentum needed to break above the lower $20K zone and tight macroeconomic factors have been speculated to be the main cause.

Katie Stockton, founder of Fairlead Strategies LLC., noted:

“I think we should respect the downtrend and assume the bear market cycle is still dominant.”

Meanwhile, Bitcoin hodlers have shown no signs of relenting in their quest for more coins as more than 42 million addresses hold BTC despite the bear market. This is 4.5 million more than in 2021; data analytics company IntoTheBlock he pointed.

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